Analysis of Carbon Tax as an Incentive Toward Building Sustainable Grid with Renewable Energy Utilization

This study presents an analysis of technical and financial viability of hybrid grid/Renewable Energy System (RES) configurations for a neighborhood in Miami. Assessment criteria comprised reduction in net present cost (NPC), cost of energy (COE) and greenhouse gases (GHG). Mat lab® Simulink and the RES software HOMER were utilized as the assessment tool. The modeling is performed based on hourly load data of Miami, south east coast of the USA. Grid connection is required to provide the energy backup and as well to commercialize the system. This research analyses cost efficacy to encourage use of renewable energies, specifically, wind and solar. For this purpose, an evaluation of the Co2 tax level of cost effectiveness of the system is also conducted. Outcomes demonstrate that there is remarkable potential of Co2 mitigation along with COE reduction and sustainable and resilient energy development from employing RES. The results show that there are enough prospects for renewable based DG generation in existence of appropriate policy allocation for GHG emission penalties and Market Price Referent (MPR). Thither is a considerable quantity of literature available on renewable incentives. The focus of the experimental studies is mostly on the comparison of the different supporting action plans and in their advantage to promote the utilization of renewable technologies but not on their cost to reduce Co2 emissions.